Hello Experts,
My client want to post an invoice which has Service Tax on reverse charge basis i.e. 25% Non Cenvatable + 75% Non Cenvatable.
Below attached is client requirement.
Particulars | Amount | |
|
| |
Basic Value | 100.00 | |
Non Cenvatable | 25% Service Tax ( 25% of 12.36% ) | 3.09 |
Total Invoice Value | 103.09 | |
|
| |
Non Cenvatable | Reverse Charge Service Tax ( 75% of 12.36 % ) | 9.27 |
|
| |
|
| |
Accounting Entry |
| |
|
| |
Expenses/Assests A/c Dr | 112.36 | |
To Vendor A/c | 103.09 | |
To Service Tax Reverse Charge Payable A/c | 9.27 |
I have created the reverse charge condition but the calculation is going wrong.
System is calculating tax on Basic Value + Reverse Charge Value.
Attached screenshot of document posted with above reverse charge tax code.
Please guide how to arrive at correct tax calculation.
Regards,
Prasad